Relay Therapeutics Stock Is Up Nearly 500% Over the Past Year

• Relay Therapeutics (RLAY) is a clinical-stage precision medicines company focused on targeted oncology, with a $4.4 billion market cap.
• RLAY has surged 486% over the past year.
• Shares are trading near a new 3-year high.
• Technical momentum is strong, but fundamentals show that revenue is expected to decrease by more than 30% this year. 

Today’s Featured Stock

Valued at $4.4 billion, Relay Therapeutics (RLAY) is a clinical-stage precision medicines company. It focuses on enhancing small molecule therapeutic discovery in targeted oncology. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals and superior current momentum. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. RLAY checks those boxes. The Trend Seeker issued a new “Buy” signal on June 2. Since then, the stock has gained 27.32%.

Barchart’s Technical Indicators for Relay Therapeutics

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Relay Therapeutics scored a 3-year high of $20.79 on July 9.

• Relay Therapeutics has a Weighted Alpha of 383.66.
• RLAY has a 100% “Buy” opinion from Barchart.
• The stock has gained 486.26% over the past 52 weeks.
• Relay Therapeutics has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $20.20 with a 50-day moving average of $18.03.
• RLAY has made 6 new highs and gained 7.05% over the past month.
• 60-month beta of 1.69.
• Relative Strength Index (RSI) is at 62.47.
• There’s a technical support level around $19.73.

Don’t Forget the Fundamentals

• $4.4 billion market capitalization.
• Revenue is expected to be down 31.21% this year but rise again by 60.64% next year.
• Earnings are estimated to decrease by 1.09% this year and again by 0.92% next year.

Analyst and Investor Sentiment on Relay Therapeutics

• The Wall Street analysts followed by Barchart give the stock 14 “Strong Buy” and 1 “Strong Sell” opinions with price targets between $20 and $32.
• Value Line rates the stock “Above Average.”
• CFRA’s MarketScope rates the stock a “Hold.”
• Morningstar thinks the stock is 24% undervalued with a fair value of $26.53.
• 4,050 investors are following the stock on Seeking Alpha, which rates it a “Hold.”
• Short interest is 22.21% of the float with 13.38 days to cover the float.

The Bottom Line on Relay Therapeutics

RLAY is highly speculative. Relay Therapeutics primarily generates revenue through collaboration and licensing arrangements rather than product sales. However, analysts who know the industry are high on its future ability to raise earnings.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.